2. Imagine this 60’s building 80 +residential lots Panoramic beach views Fire order unsatisfied for 8 years Insurance compromised $3.4m to fix without value increase Residents largely retirees
10. Part 2 Question How do buildings fall into disrepair? Answer Owners are confused and leadership is absent
11. Confusion reigns supreme They (the strata management firm) are totally disinterested in providing any assistance and keep saying it’s the owners corporations problem (168) There is no-one taking responsibility – each is assuming someone else is responsible (51) Source: Actual responses by survey respondents, Managing Strata Repairs Easthope et al City Futures July 2009
12. Modern buildings leak 2/3rds surveyed with apartments built since 1997, report ongoing defects caused by defective building and development: City Futures 2009 Private certification began with amendments to the Environmental Planning and Assessment Act 1 July 1998
13. Proper repair estimates are not being made Source: Table 11 Managing Major Repairs in Residential Strata Developments NSW, City Futures 2009
14. Estimates are being ignored Case study from “The Truth About Strata, What Purchasers Really Need to Know”, TEYS Lawyers 2011 Building also had estimated fire safety order expenditure of $55k and unfunded and un-costed building defects > $100k Therefore, really under funded by > $181k or $3,773 per lot
15. Maintenance policies are non-existent Maintenance policies include: Objectives for consistency Agreed purpose Maintenance philosophy (proactive and reactive) Priority ratings Inspection frequency Contractor competencies Complaint handling Safety monitoring Compliance reporting Which owners corporation is yours? From “The Committee’s Guide to Improving Strata Title Property Values”, Michael Teys 2009
16. Part 3 Question What do we do to extend building life expectancy? Answer Apply some entrepreneurial effort to seize the opportunity
23. Join our next webinar Join us for our next webinar at 4.00pm on Thursday 2 June 2011: “Hidden Tax Liabilities and Opportunities from Being a Member of an Owners Corporation” Reserve your seat now https://www3.gotomeeting.com/register/599076398